Reengineering of supply chain process in production systems-a case study

Abstract

© 2013, Inzinerine Ekonomika-Engineering Economics. All rights reserved. Modern enterprises are faced with many challenges and continually changing competitive environment, such as globalization of the economy of developed countries, the increasing demands for the quality and lower sale price of products and services, deregulation of the economies of developed countries, demands for excellence and continuous improvement. Because of these and many other reasons, there are permanent requirements for changes in performances, innovations, increasing flexibility and improving the economic performance of the company. The main objective of this paper was to explore the possibilities for improvement of important business processes, such as supply chain management in fast moving consumer goods industry (FMCG) with the technique of business process reengineering (BPR) and business process improvement (BPI). Methodology used in this paper included a step approach in line with the Harvard Business School Business (HBS, 2010) process improvement supported with value stream mapping (VSM) lean tools. First, the authors made a review of available literature on business process reengineering and supply chain management. In continuation, there have been analyzed the technique of BPI according to the HBS and then integrated appropriate aspects and steps of BPI in supply chain process of domestic company. They included: financial analysis of company before BPI act; implementation of BPI and second financial analysis of company’s performances after BPI implementation. The paper presents a case study research performed to point out the significance of BPR in supply chain management. The authors tried to explain main areas of supply chain process in particular production company so as the improvements that can be achieved by using techniques of BPR.